For 2019 the federal government is showing their gift giving spirits by upping the Tax-Free Savings Account (TFSA) contribution limit from $5,500 to $6,000.
Well, technically this isn’t a true gift, but an expected updated. You see, the TFSA limit was set at $5,000 on its debut back in 2009, but because it is indexed to inflation every year and rounded to the nearest $500, it has been long planned it would be at $6,000 in 2019. The only exception to this was back in 2015 when the Conservative majority government temporarily had the limit set to $10,000.
If someone, who was old enough, had never contributed to a TFSA before, then the cumulative room is now $63,500 come January 1, 2019.
Here is a look back at TFSA’s historic chart on how we got here:
| Year | TFSA Annual Limit | TFSA Cumulative Limit |
|---|---|---|
| 2009 | $5,000 | $5,000 |
| 2010 | $5,000 | $10,000 |
| 2011 | $5,000 | $15,000 |
| 2012 | $5,000 | $20,000 |
| 2013 | $5,500 | $25,500 |
| 2014 | $5,500 | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016 | $5,500 | $46,500 |
| 2017 | $5,500 | $52,000 |
| 2018 | $5,500 | $57,500 |
| 2019 | $6,000 | $63,500 |
Good to know. Haven't contributed into my TFSA (currently held at Questrade) in years. Honestly, i do wish the $10,000 limit returned. It was the last time i actually contributed. When it dropped i lost my motivation for whatever reason.
People, just remember if you open/contribute to a TFSA investment account to be aware to limit foreign dividends. At least with USA dividends have a withholding tax (15-30%). Yikes! But then if your returns are much higher than its worth the risk.
Yea thats great and all for those who can afford to lay money away for such a thing. 🙁
Any descent savings accounts that have high TFSA interest rates? I'd do a GIC TFSA but the fear is the rate will drop or worse, i find a better rate but stuck locked in from moving.
Thanks for the reminder. Almost forgot to withdrawal so i can create a new tfsa at another stock broker. Cheers mate!